A few predictions from my crystal ball...
1. 2Q revenue = 450M, EPS = 0.17 (.34 presplit), margin = 9.0%
2. IBM, Compag deals announced AFTER earning announcements.
3. The 5M share new offering will be sold out first two days of
road show (institutional demand).
4. Major buys from institutions after road show.
5. Price will hit 100 this year, another 3/1 split. Price will then
stabilize around 100 presplit for a while before taking off to
200 in 1997.
At a price of 100/sh and 125 million shares (after new offering),
market cap will be 12.5 billions. 1997 revenue should be at least
3.5 billions, which give a price/sale ratio of 3.6. Margin should be
in the 12-16% range. 1998 revenue should be 6-8 billions, or 30% of
all data storage market. By 1998, Zip and Jaz will be the standard
and primary data storage peripherals for all PCs and a host of new
applications. And we should then have 3-4 new improved versions
of Zip and Jaz drives/disks.
Current price is still very cheap in my book.
May be I am full of it. But again my estimate could be way too low for
this $25 billions data storage market, which should continue to grow
nicely each year. Anyhow, I am betting just about everything I got
on this next Microsoft. So far so good.
As long the market holds up, there is no worry of a major "correction"
in current IOMG price, as some folks continue to suggest since
last year. Use weakness to add more, that 's my advise.
taking off again in 1998. |
